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TUTOR QUESTIONS FOR CHAPTER 6 - TUTOR QUESTIONS FOR CHAPTER...

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TUTOR QUESTIONS FOR CHAPTER 6 Accounting I Instructor: Dr. Nguyen The Loc Tutor: Minh, MBA Group Members: Dang The Duong Vu Hoang Duong Nguyen Thi My Hanh Lam Vu Truc Thuy Pham Tuyet Nhung
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E 6-30 (p. 261) June 24: Accounts Receivable ........................................... $70,000 Revenue ................................................... 70,000 (Sold merchandise on credit; 2/10, n/30) June 30: Cash .................................................................... 39,200 Sales Discount .................................................... 800 Accounts Receivable ................................ 40,000 (Customer was allowed a discount for the timely payment) July 20: Cash .................................................................... 21,000 Sales Returns & Allowances ............................... 9,000 Accounts Receivable ................................ 30,000 (Received payment and returned-merchandise) E 6-32 (p.261) Determine the amount of bad debt expense. 1) An aging account receivable analysis that probable uncollectible accounts receivable at the yearend amount to $3,900. Allowance for bad debts Bad debts
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Beg. 1,300 5,200 5,200 3,900 2) Company policy is to maintain a provision for uncollectible account receivable equal to 4% of outstanding account receivable. $66,400 x 4%= $2,656 Allowance for bad debts Bad debts Beg. 1,300 3,956 3,956 2,656 3) Company policy is to estimate uncollectible accounts receivable as equal to 1% of the previous year’s annual sales, which were $350,000.
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